Sometimes even your home insurance and auto insurance can’t account for every disaster in life. To further protect your assets, there are Personal Umbrella Policies.

An umbrella policy kicks in when the limits of your auto insurance or home insurance have been exhausted and there are still damages to pay.

How could that happen?

Here's some examples:

You’re driving down Del Prado Blvd in Cape Coral, and you get a text from your spouse. You look down to check it, swerve, hit an oncoming car and cause a 8-car pile-up during rush hour. Generally, the first vehicle that failed to stop and caused the chain of collisions will be at fault for the entire accident. Thing is, your auto insurance Property Damage Liability only covers damage to the other vehicles up to $50,000, but you are held responsible for about $200,000. Your Umbrella Policy would pay the rest.

You are interviewed by the News-Press and asked about your former business partner who you’ve had a falling out with. You say some negative things that could be considered slander and he sues. In court, he's awarded $750,000 for damages to his business (that you must pay). Your Umbrella Policy covers this.

You let your children and several of their friends play paintball in your large back yard. The children were experienced and advised of all the safety rules including the use of headgear at all times. A participant removed her headgear as she was leaving the field in order to better hear someone calling her name. She was hit in the eye resulting in a $475,000 settlement. An Umbrella Policy pay the settlement.

Umbrella policies provide an extra cushion of protection.

Umbrella policies cover damage claims that you, your dependents or even your pets may cause. They start paying out after the liability insurance on your homeowners and auto policy runs out. For example, if you have a home insurance policy with liability coverage of $300,000, the umbrella policy will pay claims above $300,000, up to the limit you select, such as $1 million. Or if your liability limit on your car insurance policy is $250,000 of bodily injury protection per person and $500,000 per accident, your umbrella coverage kicks in after you exhaust that coverage.

Because the majority of claim risk is paid by your primary auto or home policies, personal liability umbrellas are relatively inexpensive starting as low as $225 for a $1M ($1,000,000) policy.